# One Discount Point Is Equal To:

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Solved: A "discount (or Interest) Point" Is Equal To 1% Of. – A "discount (or interest) point" is equal to 1% of the loan amount. 1. true: 2. false: Expert Answer. 100 %(2 ratings) This problem has been solved! See the answer. Previous question Next question . Need an extra hand? Browse hundreds of Finance tutors.

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The cost of each point is equal to one percent of the loan amount. For instance, for a \$100,000 loan, one discount point equals \$1,000. Paying for points lowers your interest rate, because the lender receives the income in a lump sum at closing rather than collecting the interest as you make payments on your loan.

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As you can see, a mortgage point is only equal to \$1,000 at the \$100,000 loan amount level. So you might be charged several points if you’ve got a smaller loan amount (they need to make money somehow). At \$1 million, you’re looking at \$10,000 for just one mortgage point.

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The United States Should Not Switch To A Declining. –  · The United States Should Not Switch To A Declining Discount Rate. going one way and the discount the other. The point of all of this is to enable us.